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It has much the same technological base as DDR2, but the power and heat dispersal requirements have been reduced somewhat, allowing for higher performance memory modules, and simplified cooling systems. GDDR3 is not related to the JEDECDDR3 specification. This memory uses internal terminators, enabling it to better handle certain graphics demands. To improve throughput, GDDR3 memory transfers 4 bits of data per pin in 2 clock cycles.

The GDDR3 Interface transfers two 32 bit wide data words per clock cycle from the I/O pins. Corresponding to the 4n-pre fetch a single write or read access consists of a 128 bit wide, one-clock-cycle data transfer at the internal memory core and four corresponding 32 bit wide, one-half-clock-cycle data transfers at the I/O Pins. Single-ended unidirectional Read and Write Data strobes are transmitted simultaneously with Read and Write data respectively in order to capture data properly at the receivers of both the Graphics SDRAM and the controller. Data strobes are organized per byte of the 32 bit wide interface.

Despite being designed by ATI, the first card to use the technology was nVidia's GeForce FX 5700 Ultra in early 2004, where it replaced the GDDR2 chips used up to that time. The next card to use GDDR3 was nVidia's GeForce 6800 Ultra, where it was key in maintaining reasonable power requirements compared to the card's predecessor, the GeForce 5950 Ultra. ATI began using the memory on its Radeon X800 cards. GDDR3 was Sony's choice for the PlayStation 3 gaming console's graphics memory, although its nVidia based GPU is also capable of accessing the main system memory, which consists of XDR DRAM designed by Rambus Incorporated (Similar technology is marketed by nVidia as TurboCache in PC platform GPUs). Microsoft's Xbox 360 has 512 MB of GDDR3 memory. Nintendo's Wii also contains 64 MB of GDDR3 memory.